Ford is Сonsidering to Close Plants in Russia

OREANDA-NEWS Ford Motor Company is considering the closure of two large factories in Russia. According to this information, the closure of enterprises may become part of the company's program for restructuring business in non-profit regions.

Sources indicate that Ford is discussing the closure of the plant in Vsevolozhsk, Leningrad region, as well as one of the two plants in Tatarstan.

Public relations Manager Ford Sollers (Ford with "Sollers") Ekaterina Komarova could neither confirm nor deny information about the discussion of the closure of plants in Russia. "Shareholders are reviewing their plans, considering a few options. All decisions will be taken in the second quarter of this year. At the moment, all the plants are operating normally," Komarova said.

​In early January, the head of the European branch of Ford Stephen Armstrong warned that in the region, the automaker failed to reach the necessary indicators, and therefore to increase efficiency, "significant changes" are planned, including the reduction of several thousand employees and even the closure of individual enterprises.

On January 10, the press service of Ford reported that the company is preparing for a strategic review of the restructuring conditions of Ford Sollers. Then it was indicated that the decision is planned to be taken in the second quarter of 2019.

A representative of Ford Sollers confirmed that the American and Russian companies are conducting a strategic review of plans for their joint venture. According to him, the shareholders are considering several options for restructuring the business in the Russian market. The Ministry of industry and trade confirmed that they are aware of the progress of negotiations between partners on Ford Sollers, pointing out that no decisions regarding production capacity, product line and staff reductions have yet been made.

In mid-February, the Governor of the Leningrad region Alexander Drozdenko said that the government of the region agreed with Ford Sollers that the plant in Vsevolozhsk will continue to work at least until the end of this year.